DETROIT (AP) — Detroit's mayor warned Monday that the city could go broke if its top lawyer refuses to drop her lawsuit challenging a deal with Michigan officials that seeks to rescue the city from financial collapse.
The most recent clash between Mayor Dave Bing and the city's Corporation Counsel Krystal Crittendon underscores how precarious Detroit's situation remains, even after officials signed the deal in April letting the state take a more active role in city fiscal restructuring without the embarrassment of appointing an overseer to do the job.
Although Crittendon's lawsuit targets that so-called consent agreement, Bing and state officials say it also could imperil a separate contract allowing the city to sell bonds in order to pay short-term bills and make payroll for its approximately 10,000 employees. Bing told the City Council that $80 million in precious revenue sharing for the city could be withheld.
The legal conflict could scare off potential buyers of those bonds, Bing and state officials warn. If $137 million worth of bonds are not sold by June 27, the bank could intercept the revenue sharing money that was used to secure the loan.
"Without that, we're dead," Bing said. "We get into this lawsuit, and we get into this litigation, nobody knows how this is going to play out or how long it's going to take. In the meantime, we have no money to run the city."
Crittendon claims the consent agreement approved in April between Bing and Gov. Rick Snyder is null and void because Detroit's charter prohibits the city from entering into contracts where at least one side owes the other money. She and some on the council have said for months that the state owes Detroit $220 million in past revenue sharing.
Snyder has said the state doesn't owe the city the money. Crittendon didn't immediately return a call Monday from The Associated Press.
Detroit's new charter, approved last year by voters, gives the city's corporation counsel the authority to investigate violations of the document — meaning Bing and the Council can't force her to drop the suit. It takes six votes from the nine-member council to remove her.
If the lawsuit is not dropped by early this week, current revenue sharing could be withheld for payments on bonds, Deputy Treasurer Thomas Saxton wrote Thursday in a letter to Jack Martin, the city's chief financial officer. Saxton said the lawsuit challenging the consent agreement could cause concern among third parties interested in purchasing the bonds.
Detroit is due $25.1 million this month, $25.1 million in August, $27.7 million in October and $4.6 million in December, Saxton said.
Not only is Detroit's accumulated budget deficit more than $200 million, the city's long-term structural debt tops $13 billion.
Without the revenue sharing, Detroit would have a negative cash flow starting Friday and there "would be chaos," Council President Pro Tem Gary Brown told The Associated Press Monday. "After Friday, we won't be able to make payroll in two weeks."
Crittendon's lawsuit goes before a judge Wednesday. The City Council could vote Tuesday on a resolution asking her to drop it.
Bing asked Crittendon Saturday to drop the lawsuit and she said "no," Brown said.
"If I make the resolution tomorrow, I don't think there'll be the support for it," Brown said. "Everybody is in a stare down. It's like, who is going to blink?"
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This Week’s Celebrity Instagrams (10/15-10/21)
31 photos Launch gallery
1. Just a NY girl with BIG dreams....
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2. HAPPY CHILDREN=QUALITY PARENTING. We don't always see eye to eye on everything and that's normal. We're human beings. But we come together and do it right for what's important, the kids. We are not enemies, we are parents. And we are parents 1st. S/O to @monyettashaw for making Mason's bday memorable. S/O to @itscrystalsmith at home taking care of our other lil' Prince. ❤️❤️❤️ THIS IS WHAT CO-PARENTING LOOKS LIKE. #Blessed #Happy #AboveTheDrama #BiggerThanUs
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3. So happy to finally be able to share with you all that I’m the new Global Brand Ambassador for @Revlon! Follow my day on RevlonSnaps. Yay! Choose Love, Everybody! #RevlonXCiara #chooselove #ad
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4. Glam on point!!!@makeupbymotoko & @shaylinjoneshair #easybreezy @lifetimetv #beachesmovie #january2017 😘
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5. ✨True love ✨📸: @jessiemarrerophotography
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7. Today was not easy..but by the grace of God we all got through it. Words cannot express our gratitude for all of your Prayers, Positive thoughts and Support for us throughout the years. Tommy will be missed but most certainly never forgotten...And PLEASE don't ask "Where's Martin?.." he was there too...just not in this picture. Lol! God bless you all.. #LoveConquersAll #MartinShow
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9. West coast get ready for #RockyHorror. I will be live tweeting again. #letsdothetimewarpagain
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10. #THEKEYS pre order yours now ... Available everywhere #NOV22 #WeTheBest 🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑
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11. We about to ROCK at #KCABlackBall!! All for our life-changing effort to end 🌎 AIDS.
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12. Today's #SNAPJACK is brought to you by @yazzthegreatest 😂😂😂💋💋💋
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13. Damn girl you kinda old to be headed to the Go Go. You coming in at the age they leaving. LMAO
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14. Daddy daycare B-Boxin with @acewellstucker @shopraisingace
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15. #FBF Naviyd & URV "LIL MONSTERS"
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16. HAPPY BIRTHDAY TO ONE OF THE BIGGEST LEGENDS IN OUR HIPHOP HISTORY! @snoopdogg CONTINUED BLESSING AND LOVE FAMILY!!!!! REAL OG!
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17. Thank you for a beautiful night VSU! Let's do it again! #HOMECOMING
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18. Had a great time this morning with my familia Erica, Griff & Truth!!
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19. Check out my interview on @essence facebook live. #inmyownwords #nycpromo #day2
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20. #She💋 #tbt #TheCoveAtTheAtlantis #DawgPawsAndAll
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21. Bae #retailtherapy
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22. Why me and @coryhardrict got the same pose... and notee... new mouth #naked
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23. When my husband is my personal 'hype-man'! it kills me every time! 💜😂 #WHATNOW #lostfiles📷
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24. Diggy Simmons
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25. Hand full of @jacquieaiche 💙💎💍 @esnail_la 💅🏾
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26. SuperSoulers! You can watch my interview with Carl Lentz live from my Facebook page, tomorrow at 11a ET| 8a PT. #SuperSoulSunday
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27. 💋 .. When the friendship is easy like Sunday morning. ☀️
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28. Sunday mornings are the best........... hugs and cuddles with my angel
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29. #huggar16 #hellohuggars
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30. My gym is everywhere!.. #RnBMoney #TheGeneral 📸: @twelvepastseven
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31. Nothing I would rather be doing... Rocko setting up our movie, Romelō working on a puzzle & Laiyah singing and sharing all she's learning at school... I'm so grateful for the joy they've brought into my life ... Praying for peace , joy & love in the home of EVERY family ♥️ #HeadScarfPJSunday LOL 😂
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